Open AccessCost Control And Financial Performance Of Pharmaceutical Firms In Nigeria
Author(s) -
Oladayo Ayorinde Ajala
Publication year - 2021
Publication title -
journal of corporate finance management and banking system
Language(s) - English
Resource type - Journals
ISSN - 2799-1059
DOI - 10.55529/jcfmbs.11.16.25
Subject(s) - business , control (management) , order (exchange) , panel data , profit (economics) , finance , operations management , economics , econometrics , management , microeconomics
This paper examined the impact of cost control on financial performance of pharmaceutical firms in Nigeria from 2010 to 2019. Secondary data were used in this study. The secondary sources of data were sought from published annual reports of the six quoted pharmaceutical firms in Nigeria. The variables used in the study include; Profit after Tax (PAT), Cost of Raw Material (CRM), Selling and Distribution Expenses (SDE), Salaries and Wages (SWE), Research and Development (RDC) and Training (TEC). Panel regression analysis was employed to evaluate the impacts of cost control on financial performance of pharmaceuticals firms in Nigeria. The results revealed that cost control has significant influence on financial performance of pharmaceuticals firms in Nigeria. The study recommended that the management of the firms should adopt modern strategic cost management method for effective operation in the organization in order to enhance their performance.